LR Session Scoop: Week 4
Updated on 5/10/2021 at 11:00 AM
As the session reaches its mid-point, lawmakers continue to wheel and deal about contentious issues such as centralized sales tax collections, legalization of recreational marijuana, and others. However, your team at Louisiana REALTORS® is on track with the legislation it is tracking or supporting.
Since our last update, Louisiana REALTORS® came to a compromise with Representative Royce Duplessis and the Louisiana Fair Housing Action Center regarding House Bill No. 374 and had House Bill No. 258 by Representative Kathy Edmonston fine-tuned with amendments adopted in the House Commerce Committee.
Efforts continue to bring changes to partition laws so that co-owners receive the most value for their property in court ordered sales. It looks like the issue will be sent to the Louisiana Law Institute to study. This area of law is complex and far reaching, and a study may be the best approach in this instance. However, there is still room for it to be worked out in legislation this year. Only time will tell.
Below, you will find highlights on the key bills we are monitoring as well as a complete bill tracking report. We will continue to update you as new information becomes available.
REAL ESTATE LICENSE RENEWAL
House Bill No. 258 by Representative Kathy Edmonston (updated 5/10/21)
What Would Change: This bill would move the renewal date of a real estate license up to September 30th. This change would take place in 2022 for your 2023 license renewal. Rather than a license renewal being “delinquent” after the license expires, the renewal would be delinquent three months prior to the license’s expiration.
What Would Stay the Same: License expiration and errors and omissions insurance expiration would remain December 31st. The deadline for completion of continuing education would remain December 31st. All renewal and delinquency fees would remain the same.
Status: Pending Legislative Bureau
Position: Support
Why: Passage of this bill would help ensure that all REALTORS® were properly licensed and insured as of January 1st.
Currently, licensees have the first quarter of the following year to delinquently renew their licenses leaving those who do not renew before December 31st technically unlicensed and uninsured as of January 1st.
LREC states that licensees who currently renew delinquently after the December 31st license expiration generally have a “lapse in coverage” of their E & O insurance. On “Claims Made” E & O policies, any lapse in coverage forfeits coverage for prior acts of licensees and potential consumer recoveries.
This change would ensure that renewals occur timely and that licensees are properly licensed and insured by the beginning of the year rather than a fourth of the way into it. Amendments were adopted in the House Commerce Committee that would also give a one-month grace period in 2023 to renew in January and to clarify that continuing education requirements would remain on a calendar year.
PROPERTY
House Bill No. 400 by Representative Jean-Paul Coussan (updated 5/10/21)
House Bill No. 521 by Representative Alan Seabaugh (updated 5/10/21)
What: Both bills seek to make changes in Louisiana law (one in the Civil Code, the other in the Code of Civil Procedure) regarding partition of co-owned property. These laws have often led to co-owners of property losing their family property or receiving less than the fair market value for it and it is past time for change.
Status: HB No. 521 Pending State Judiciary A Committee, HB No. 400 Pending Senate Final Passage
Position: Monitor. The bills were originally filed to do far less but are evolving daily. Therefore, the position will remain as monitor.
Why: Louisiana REALTORS® supports efforts to change our partition laws to see that those who co-own property receive maximum value for their property in sales that are open and transparent. Louisiana REALTORS® is working to bring together Louisiana Appleseed, the Louisiana Farm Bureau and the Louisiana Land Title Association on this issue to make improvements.
The Senate Judiciary A Committee felt that HB No. 400 took more of laser approach to fix immediate problems with recent changes and that the Law Institute should study what HB No. 521 attempted to do as it would be a major departure from current law that had not been examined.
House Bill No. 348 by Representative Mary DuBuisson (updated 5/10/21)
What: This bill would require that the reading aloud of the description of a piece of property at a sheriff’s sale be done so in such sufficiency to reasonably provide notice to the public of the property being offered for sale.
Status: Pending House Floor Action
Position: Support
Why: The average property owner or purchaser does not know the lot number, lot lines, filing number, etc. of property, but they do know the address and neighborhood where the property is located. If adopted, this would assist property owners and purchasers to know with greater certainty what property is being sold at a sheriff’s sale.
HOUSING
House Bill No. 673 by Representative Gary Carter (updated 5/10/21)
What: This bill would create the Home Ownership and Personal Equity Fund and direct the treasurer to deposit $50 million of federal monies allocated to Louisiana to the Coronavirus State Fiscal Recovery Fund of the American Rescue Plan of 2021 into the fund.
Status: Pending House Appropriations; considered 5/10/21
Position: Support
Why: The monies in the fund would be used to provide grants for financial and educational assistance for homebuyers in Louisiana who are currently receiving affordable housing or other rental assistance thereby further promoting and helping people attain the dream of home ownership.
Senate Bill No. 188 by Senator Glen Womack (updated 5/10/21)
What: This bill would allow for two additional Senate President appointees and two additional House Speaker appointees to be seated on the board of the Louisiana Housing Corporation.
Status: Pending Senate Local and Municipal Affairs; considered 5/5/21
Position: Support
Why: Additional voices and different points of view would strengthen the mission of the Louisiana Housing Corporation to ensure that every Louisiana resident is granted an opportunity to obtain safe, affordable, energy-efficient housing.
GENERAL
House Bill No. 451 by Representative Paula Davis (updated 5/10/21)
What: Beginning in 2022, insurers would be required to give discounts and insurance rate reductions for residential and commercial building insurance policies if the structure is certified as in conformance with the fortified home or commercial standards after inspection and certification by an Institute for Business and Home Safety certified inspector.
Status: Pending Senate Referral
Position: Support
Why: Retrofitting one’s property to these standards is costly but may help reduce repair costs following wind events. Insurance companies should recognize the costs incurred by property owners in taking these steps to protect their insured property and provide discounts and credits for doing so.
House Bill No. 619 by Representative Stephanie Hilferty
What: Authorizes parish governing authorities to create commercial property assessed clean energy resilient programs in federally designated opportunity zones.
Status: Pending House Municipal, Parochial, and Cultural Affairs
Position: Support
Why: The use of commercial property assessed clean energy resiliency programs within local jurisdictions across the state will increase economic development, lower insurance costs, and lower disaster and emergency response and aid costs to local governments. These programs will also decrease energy and water costs and encourage energy and water sustainability.
House Bill No. 437 by Representative Foy Gadberry (updated 5/10/21)
What: This bill would require a properly registered certified building inspector to conduct all inspections of any commercial or residential structure and shall be present on site for such inspections. Therefore, this would prohibit virtual code inspections.
Status: Pending Senate Commerce, Consumer Protection, and International Affairs
Position: Support
Why: The Louisiana Uniform Construction Code was put in place to ensure that structures are built and remodeled in a safe and structurally sound manner. To ensure this continues, it is imperative that code inspectors be able to physically inspect a structure. Virtual inspections do not provide for the same level of scrutiny as physical inspections do.
House Bill No. 199 by Speaker Schexnayder (updated 5/10/21)
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What: Louisiana’s current legal structure permits multiple entities to collect sales and use taxes from businesses. This requires businesses to remit these taxes to multiple entities all with their unique systems and quirks. This legislation would create the State and Local Streamlined Sales and Use Tax Commission, comprised of equal representation of local and state appointees to act as the single collector for Louisiana and to simplify processes for businesses.
The change would require a constitutional amendment meaning that 2/3’s of the legislature would have to agree on the new Centralized Sales Tax Collection system and then the change would have to be approved by a statewide vote of the citizens.
Status: Pending Senate Final Passage
Position: Support
Why:
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In almost every other state, sales and use taxes are collected at the state level and then remitted to local government. Louisiana does this the other way around. Our system is burdensome for businesses because taxes are collected at multiple points all with unique policies and procedures that then expose businesses to multiple annual business audits.
This leaves companies working and paying more to implement systems to pay their taxes in Louisiana than they do in other states. It is important that we transition our system of sales and use tax collection to be more compatible with the way business is done in the twenty-first century if we want our economy and real estate markets to expand.
LEASE
House Bill No. 374 by Representative Royce Duplessis (updated 5/10/21)
What: This would require landlords to allow for statements to be submitted regarding financial hardships following a declared disaster and require that the language on the application reference COVID-19 and hurricanes.
Status: Pending Senate Commerce, Consumer Protection, and International Affairs
Position: Monitor
Update: Louisiana REALTORS® met with Representative Duplessis and other interested stakeholders on Thursday, April 29th in an effort reach a consensus on how to reach the author and proponent’s goal of allowing applicants who have been adversely impacted by disasters to inform potential landlords of this through the application process. Amendments were adopted on the House floor to reflect discussions and Louisiana REALTORS® thanks Representative Duplessis for working with all stakeholders.
Why: The bill will allow prospective tenants to inform landlords of hardships they may have suffered during COVID-19 and after storms. The hope is that landlords will take a second look at prospective tenants’ applications and maybe give them a second chance. All requirements to adopt and post application screening processes, disclose the amount of “screening charges”, and inform applicants of credit reporting rights were removed from the bill.
BROADBAND
House Bill No.476 by Representative Rodney Schamerhorn (updated 5/10/21)
House Bill No. 648 by Daryl Deshotel (updated 5/10/21)
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What:
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House Bill No. 476 would allow parishes and municipalities to partner and accept monies for the purposes of expanding broadband and high-speed data infrastructure that is desperately needed as we depend on internet services more each day. This is pending in House Commerce.
House Bill No. 648 would establish the "Granting Unserved Municipalities Broadband Opportunities" grant program for areas with low internet connectivity to be able to access dollars to improve connectivity.
There is discussion about project qualifications and who and who should not be eligible for partnerships and grant dollars. However, the purpose of both bills is to improve internet service to Louisiana residents.
Status: HB No. 476 is pending House Commerce, HB No. 648 is pending House Final Passage
Position: Support
Why: Louisiana REALTORS® now more than ever rely on streaming video and virtual tours to assist clients in buying and selling property. REALTORS® need high-speed internet to do this and their clients need high-speed internet to telework, access virtual classrooms, and access telemedicine. REALTORS® know that affordable high-speed broadband is almost as necessary as water and electricity because their clients are demanding it. This is why Louisiana REALTORS® supports efforts to improve internet service in Louisiana.
